VOTERS MAY DECIDE HEMP'S FUTURE IN S.D.

EDITOR'S NOTE: This is the third and final part of a series on industrial
hemp and its future as a possible South Dakota crop.

Should farmers in South Dakota and other states be allowed to grow
industrial hemp?

With groups on both sides of the issue squaring off, about the only thing
that is clear is there may not be a clear answer at this point.

Proponents of legalizing the long-banned crop point to opportunities they
say exist for producers to access new, developing markets and give them
another cash crop while being able to compete in domestic markets which now
import hemp and its byproducts.

Opponents point to the possibility of increased illegal drug manufacturing
by allowing producers to grow hemp and question whether or not there are
actually markets out there for producers and processors to sell the crop.

Those who want to see industrial hemp legalized for production have begun
circulating a petition that would make the issue an initiated measure for
voters in South Dakota to decide in the 2002 General Election. But even if
passed by voters, there is no guarantee that would mean a hemp crop the
following spring.

Although there is still some debate as to whether or not South Dakota could
allow hemp production without approval of the federal government, some
people feel it is likely a federal waiver would be needed as well.

Banned in the U.S. in the late 1930s along with its relative marijuana,
hemp has been promoted as a versatile plant, providing fiber for a number
of uses as well as oil claimed to have high nutrient content and other
health benefits. In 1998, Canada once again legalized hemp for commercial
production and some proponents in the U.S. say the imports from that
country are now being trucked right past South Dakota farmers who don't
have the chance to compete.

By estimates of those wanting to see hemp grown again, imports were valued
at $200 million last year. The potential for further developing even more
uses for the plant could reach into the billions of dollars world-wide,
they say. But others, including S.D. Ag Secretary Larry Gabriel and the
U.S. Department of Agriculture say research information they have seen
indicates a much smaller demand for hemp products, perhaps as little as
5,000 acres of production each year.

Gabriel said he fears seeing producers get into growing hemp and then
having no legitimate markets for their crop, which could cause them
financial ruin.

Bob Newland of Hermosa and others locally that have been behind the
referred petition say all that has to be done is to take a look north of
the border where they say hemp growers are already making good money
entering only their third year of production.

But even Canadian officials warn that caution is needed before diving head
first into such a fledgling industry. They stress that both growers and
processors need the protection of contracting in order to ensure they can
sell their crop and that enough of it will be available for processing.

While there are products made from or with hemp available in Canada and
growers do enjoy an export market as well, just how much impact that has
isn't really known yet, one Canadian official told the Public Opinion. With
only a couple of years experience in producing and processing hemp, there
are not yet tools in place to accurately track how much leaves the country
as part of something else, such as clothing.

Growers and investors are slowly beginning to look into financial
feasibility of building more specialty processing plants for the crop in
Canada as well.

That still leaves a lot of unanswered questions about the viability and
widespread demand for hemp products.

Gabriel said that is one reason he can't, at this time, support commercial
hemp production. The other side of the coin is what he says are concerns of
law enforcement agencies that industrial hemp, with size and other physical
similarities to marijuana, would make it easier for people to grow that
drug hidden in the same field.

Others say that can't happen because the two species can't coexist in the
same area. Hemp lacks the level of THC, the drug that produces the
marijuana high, to make it potent. While marijuana may contain 5 percent or
more THC, Canadian regulations for industrial hemp limit the content to 0.3
percent and breeders are now producing varieties that contain 0.1 percent
or less.

Canadian ag officials, while cautious of proceeding too fast, are also
excited about the future of hemp in that country. A market development
advisor for Agriculture and Agrifoods Canada reeled off a lengthy list of
hemp-based products that are already or could be shortly available to
consumers there.

Yet Gabriel and other U.S. officials remain skeptical of its viability. The
South Dakota ag secretary told the Public Opinion he always has an interest
in developing specialty niche markets and, if there is evidence those
markets could be developed for industrial hemp, it deserves a more serious
look.

In the meantime, proponents will continue their campaign for its
legalization, hoping for the support of voters in South Dakota to force the
issue and, hopefully, more information will emerge to help in that
decision-making process.